Are EV stocks still attractive?

First fall in China's annual exports in 7 years has found casualties across the broad market, but especially the Chinese EV startup trio $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ and $Li Auto(LI)$ , that are also encountering slowing EV demands in the domestic market. Likewise, $Tesla Motors(TSLA)$ , which counts China among its major export markets, is also feeling the heat. Prevailing price war in the EV industry to increase share of the stagnant market does little to help the fledgling EV makers. In fact, Tesla has just announced the latest round of price cut for its vehicles in China as demands slow.

Despite growing awareness of global warming, escalating crude oil prices and tightening emissions control in many countries, with more conventional car makers jumping onto the EV bandwagon, the EV market is getting increasingly saturated. Although late to the EV party, the conventional incumbents are quickly investing heavily and forming partnerships to establish their presence.

I believe that continual innovation rather than price war will be required to distinguish from competitors, as the latter will only serve to erode the profit margins for all players in the EV industry and do little to improve overall profitability.

$Rivian Automotive, Inc.(RIVN)$  also has to expand its customer base beyond its strategic investor and major customer Amazon. Ending its exclusivity with Amazon soon to allow other companies to buy its electric vans is the right move forward for Rivian, though it may take time for the electric van maker to build its clientele and demonstrate sustainable profitability.

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